Thursday, March 5, 2009

Houses passes mortgage relief plan

The House of Representatives approved a new bill that would allow bankruptcy judges to reduce homeowners' mortgage debt as a last resort to avoid foreclosure. The bill passed 234-191 on Thursday.

Bankers fought against the so-called "cramdown" bill despite amendments that restrict it to existing primary residence mortgages, and not future loans.

The Senate is expected to consider the House bill soon.

Michael Calhoun, president of the Center for Responsible Lending, praised the House version of the bill.

"Hundreds of thousands of families have lost their homes unnecessarily and tens of millions of neighboring families have watched the value of their homes plummet. We urge the Senate to act quickly to approve this bill and put it on President Obama's desk for his signature," Calhoun said.

House approves mortgage bankruptcy overhaul

Reuters - ‎1 hour ago‎
By Kevin Drawbaugh WASHINGTON (Reuters) - Bankruptcy judges could cut the mortgage debt of homeowners in bankruptcy court as a last resort to avert foreclosure, under a bill approved by a 234-191 vote on Thursday in the US House of Representatives.

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